This document outlines an individual assignment for a course on global logistics, focusing on the application of Incoterms® 2020 for two shipments. Students are required to analyze intermodal cargo shipments, label delivery locations, and determine seller obligations based on specific Incoterms® criteria. The assignment includes various questions that test students' understanding of the Incoterms and their implications in international trade.

1. Global Logistics
CENTENNIALCOLLEGE
Individual Assignment
Course Code:
INTL704
Course Name:
Global Logistics
Module 5: Individual Assignment Incoterms® (15%)
In this individual assignment, you will apply concepts learned
in this module (CIFFA etextbook, CIFFA elearning, Lesson:
Module 5) around Terms of Trade / Incoterms® 2020. Work out
the assignment prior to beginning the quiz. Submit your
completed assignment before the end of Module 6.
You are asked to manage the following two shipments of
intermodal cargo going by TEU (sea) or ULD (air).
SHIPMENT A
SHIPMENT B
Origin:
Shipper’s Plant
Budd’s BMW Canada,
Oakville, ON, CA
VW, Taubaté, Brazil
Terminal & customs
Schenker Whse,
Montreal, Quebec
Sao Paulo International Airport
Port – seller’s side
Port of Halifax, NS

2. Port of Santos, Brazil
Port – buyer’s side
Port of Antwerp, Belgium
Port of Miami, Florida
Terminal & customs
Schenker Whse,
Munich, Germany
YYZ, Toronto
Destination:
Buyer’s Warehouse
BMW,
Munich, Germany
VW, 550 Adelaide St E., Toronto, Canada,
Use Shipments A and B (above) to completely label the diagram
with locations of delivery and shade the seller’s obligations for
the following containerized shipments:
1. (1 mark) Shipment B – Incoterm® is EXW
||
Cost
Transportation

3. Insurance
Risk of ownership
pre-carriage
main carriage
on-carriage
2. (1 mark) What is the complete Incoterm®?

4. 3. (1 mark) Shipment A – Incoterm® is CPT
||
Cost
Transportation
Insurance
Risk of ownership

5. pre-carriage
main carriage
on-carriage
4. (1 mark) What is the complete Incoterm®?
5. (1 mark) Shipment B – Incoterm® is CIF port
||
Cost
Transportation

6. Insurance
Risk of ownership
pre-carriage
main carriage
on-carriage
6. (1 mark) What is the complete Incoterm®?
7. (1 mark) Shipment A – Incoterm® is DPU port

7. ||
Cost
Transportation
Insurance
Risk of ownership

8. pre-carriage
main carriage
on-carriage
8. (1 mark) What is the complete Incoterm®?
9. (1 mark) DAP is best for a contract in which the buyer is a
large international company?
a. true
b. false
10. (1 mark) Why? Or Why not? Justify your choice for
question 9.
11. (1 mark) What potential problem is there with EXW that
makes FCA a better selection in most cases?
12. (1 mark) Using FOB “named port” in your Sales Contract
shows interested parties that (select all that apply):
a. The freight costs must be prepaid up to the port of arrival
b. The seller must arrange and pay for marine insurance
c. It is a marine bulk shipment
d. The seller must arrange and pay for any documentation or
export declaration formalities in the country of origin
e. The seller must arrange and pay for main-carriage
13. (1 mark) I am responsible for paying all the bills at my

9. company. I notice that we, the buyers, have received a shipment
for which the bill of lading says, “freight prepaid”. Am I correct
that we will be receiving an invoice from a carrier or freight
forwarder for the freight charges for this shipment?
a. Yes
b. No
c. Sometimes
d. I need more information
14. (1 mark) List the Incoterm(s) ® acronyms used for
shipments in which the truck bill of lading delivering the
product to final destination is for the seller’s account.
15. (1 mark) List all the Incoterms® in which responsibility for
costs and risks are divided at two different places:
16. (1 mark) Incoterms® 2020 made a clarification about where
delivery takes place. For the terms in “D.” above, which “place”
is where the seller is considered to have completed “delivery.”
a. where the costs divide
b. where the risks transfer
c. both places
d. in this case, no named place is required
Compare and contrast the following two terms: (2 marks
each)
CPT
CIF
17. Mode(s) of transportation

10. 18. Place of division of cost obligations
19. Place of transfer of responsibility for risk of loss
20. Insurance requirements
21. (2 marks) Sammy is a freight forwarder arranging shipping
of goods via air from Place A to Place B. It is agreed that the
Seller will arrange pre-carriage and deliver the goods to
Sammy’s warehouse. The rest of the costs and risks are for
Sammy’s customer, the Buyer. What is the FULL Incoterm®?
Excellent Exporters, in Brampton, Ontario sells products to
Toys R US in Tehran, Iran under a clean, onboard bill of lading.
Terms of sale: CPT, Designated Port, Incoterms® 2020
Cargo: 22 wooden pallets of toys loaded in one 20-ft ocean
container
Terms of delivery: consolidated container, ocean freight
Terms of payment: open account, net 60 days
22. (1 mark) Who selects the freight forwarder and pays the
ocean freight charges?
Buyer � Seller �
23. (1 mark) The place where the risk transfers from the seller
to the buyer is the “Designated Port”
True � False �

11. 24. (1 mark) There are goods of U.S. origin in the consignment
and a general export permit is required. However, this GEP 12
was not entered on the export declaration (CAED). Who is
responsible for paying the administrative penalty to the CBSA?
Buyer � Seller �
25. (1 mark) The shipment was delayed at the arrival port due to
customs clearance problems. Storage charges were US $600.00.
Who is responsible to pay for the storage?
Buyer � Seller �
26. (1 mark) When the container was unloaded at the
consignee’s door, the contents of eight pallets were damaged.
Who bears the loss?
Buyer � Seller �
27. (1 mark) What would be your recommendation about
Incoterm® named place in this problem?
You are shipping 5 skids of sulfuric acid from a “Montreal
Manufacturer”, sold FCA Montreal Incoterms® 2020. This is an
incorrect use of Incoterms® because a specific named location
is not given. After the sulfuric acid was loaded into the Cartage
company truck, at the plant, the driver on the way to the export
terminal in Montreal has an accident on the expressway. His
truck “jackknifes”, tips, and crashes against the steel guardrail,
busting the trailer doors open and spilling sulfuric acid cans all
over the highway, closing it for hours in both directions.
This leaves us with two possible situations:
28. (2 marks) Situation #1: If the buyer’s “nominated carrier”
was moving the sulfuric acid to the export terminal Montreal,
then the buyer bears the risk. Please note that “nominated

12. carrier” may also mean “local forwarder”, or “forwarder’s agent
overseas giving instructions to their local agent” to collect the
freight. A proper description of the Incoterm® for this case
would be:
Full Incoterm®:
29. (2 marks) Situation #2: The seller decides to use their own
in-house trucks to deliver the cargo to the export terminal. The
only information provided to the seller are the booking details
for the move. In this situation the seller has yet to deliver the
goods in accordance with the Incoterm® used. Thus, the seller
has the risk of loss. The proper Incoterm® for this situation
would be
Full Incoterm®:
You are employed by YYJ Exports, Victoria, BC. Your
company wants to export electrical supplies to Hotwire
Electrical Inc. in Tokyo, Japan. Shipping instructions are as
follows:
The goods are to be shipped from YYJ Exports by PRO NORTH
Trucking (175 Apple Ave., Victoria, B.C.) by truck on the ferry
to Vancouver Airport and loaded onto a JL flight to Tokyo
From Tokyo Airport’s Freight Terminal NIPPON Trucking will
deliver the goods to Hotwire Electrical Inc. Main Warehouse,
123 ABC Street, Tokyo, Japan.

13. The buyer has asked that you quote prices under various
alternatives. What complete Incoterms® would apply for the
following scenarios?
30. (2 marks) The buyer wants the goods delivered, insured, to
Tokyo Terminal, but they are willing to assume risk for the
goods once they are given to Pro North Trucking in Victoria.
31. (2 marks) The buyer wants you to deliver the goods to the
Freight Terminal HND Tokyo Airport. The buyer will make
their own insurance arrangements, and is willing to assume risk
for the goods once they are loaded on to PRO NORTH
Trucking’s trailer.
32. (2 marks) The buyer wants you to deliver the goods packed
and loaded to PRO NORTH Trucking at your plant in Victoria.
The buyer will accept the risk and cost for the goods once they
are in the possession of PRO NORTH Trucking and will make
all the necessary arrangements to bring them to Osaka.
33. (2 marks) The buyer wants you to deliver the goods to JL at
the Freight Terminal, Vancouver International where they will
accept the risk and cost for the goods and make the necessary
arrangements to transport the goods to Tokyo and beyond.
34. (2 marks) The buyer wants you to deliver the goods to their
agent, Schenker Logistics, Tokyo Airport where they will
assume risk for the goods, account for them to customs, and pay
duties and taxes and handle the final delivery.

14. 35. (2 marks) Compare and contrast the insurance rules from
Incoterms® 2010 to Incoterms® 2020.
36. (2 marks) Given that the Incoterm® used in a contract is
CIF (port of arrival), what advice would you, as a freight
forwarder, give your client, the consignee with respect to
insurance?
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